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WorksheetsChapter 5: Balance of Payment
Total questions: 10
Worksheet time: 5mins
The ________ records international transactions.
balance of payments accounting system
international accounting standards
gold standard procedure
ISO 9000 system
The ________ records exports and imports of goods and services, investment income, and gifts.
Current account
Capital account
Debt account
Official reserves account
The ________ records the purchases and sales of assets between residents of one country and those of another country.
Current account
Capital account
Debt account
Official reserves account
The ________ records the levels of gold, convertible currencies, special drawing rights, and reserve positions at the IMF held by a national government.
Current account
Capital account
Debt account
Official reserves account
The sale of a Mercedes-Benz from Germany to France would be recorded as a merchandise export in the ________ account of Germany's balance of payments.
Capital
Current
Official reserves
Export
Which of the following is a form of asset included in the official reserves account?
Government bond
Inconvertible currencies
Special drawing rights
Reserve positions at the WTO
The BOP is a useful tool for detecting signs of trouble that could lead to governmental trade restrictions.
True
False
Unilateral transfers are recorded in the capital account of the balance of payments.
True
False
The balance of payments accounting system is a double entry system.
True
False
The balance of payment is useful to international business people for the following reasons EXCEPT:
warning of new policies that could affect a country’s business climate
Indicating stability in a country’s foreign policy
Signaling increased riskiness of lending to countries
Predicting future technological changes
